France's Livret A savings account rates set to fall

The Livret A rate had been 3% since the beginning of 2023. The Popular Savings Account (LEP) rate will increase from 4% to 3.5%.

The Minister of the Economy followed the proposal of the governor of the Bank of France to lower the interest rate for savings accounts to 2.4% on 1 February, against 3% currently.

France's Livret A savings account rates set to fall

The interest rate on the popular French savings account Livret A is set to fall from next month, after a proposal from the Banque de France.

2025 - Historic 2.40% Rate for Livret A: What You Need to Know

Starting February 1st, the Livret A interest rate will be adjusted to 2.40%, down from 3%. This marks a departure from traditional rounding practices, raising questions about the calculation method. The change follows a period of stable rates and aims to support social housing funding amidst stabilizing inflation. The new rate reflects a more precise calculation, as the Bank of France moves away from previous exceptional circumstances influencin…

The Livret A rate determines the level of borrowing by social landlords from the Caisse des Dépôts to build social housing and renovate the existing public housing stock. Its decrease from 3% to 2.4% leads, over a full year, to a reduction in their financing costs of 850 million euros.

Due to the fall in inflation, the Livret A rate will no longer be 3% on 1 February. The popular savings account, on the other hand, is entitled to a “boost”